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June 18, 2021

Petrom’s Gheorghe: Competitive fuel market in Romania, among lowest prices in Europe

Fuel market in Romania is competitive and prices in our country are among the lowest in Europe, said on Thursday, Mariana Gheorghe, CEO of OMV Petrom, in a press conference.

She noted that the data on the website of the European Commission on fuel prices in different countries are not always comparable, as they contain different elements.

“We presently have the lowest prices in Europe, second or third position from the bottom. (…). Firstly: we speak of prices in Romania, not Petrom prices. Secondly, in those prices, each country can report and does report different elements,” explained Gheorghe, according to Agerpres.

She was asked to comment on a report of the Competition Council, showing that the fuel market in Romania is an oligopoly.

“We believe it is a competitive, functional market, with new entry competitors in recent years. Only last year were built over 25 new stations by different operators, and we have not built so much. Competition appears in the product quality, in the non-oil products offer, something that can be seen every day. The market grew by 4.9 pct in retail, and we increased by 5.2 pct,” maintained the Petrom representative.

Gheorghe also said that the company representatives will cooperate with those of the competition authority so as to have a very clear picture of the phenomena.

She also said that Petrom is considering the future development of a partnership with Auchan, the latter aimed at selling the company’s products in Petrom filling stations.

The Competition Council conducted an analysis of fuel prices in Romania compared to the European markets in the period January 5 to July 5, 2016, and published a report in October 2016 according to which the analyzed market has an oligopoly structure.

“The sector of fuel retail sale (petrol and diesel) occupies an important place in the Romanian economy, having a direct impact on other economic sectors as well as on consumers. The main characteristics of this sector are not very different from other European countries, its structure broadly being an oligopoly. More specifically, most of the supply on this market is concentrated in the portfolio of a limited number of oil companies (OMV Petrom, Lukoil, Rompetrol, MOL, Gazprom, SOCAR and NIS). On this market also activate a number of businesses which are not integrated vertically, with financial resources below those in the first category, which manage fuel distribution stations,” the report reads.

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